Allianz Capital Partners and Borealis Infrastructure have reached an agreement with RWE AG to purchase Net4Gas, s.r.o. (N4G), the gas transmission and transit system operator in the Czech Republic.

Allianz Capital Partners and Borealis Infrastructure, the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS), will each own a 50 % stake in N4G.

N4G owns and operates a network of more than 3,600 km of high-pressure pipelines that supply the Czech domestic market and that transit natural gas through the Czech Republic to markets across Europe. N4G is a provider of key infrastructure for the transport of gas in Europe, transporting approximately 35 billion cubic meters of gas each year.

"This acquisition expands our European investment portfolio which includes gas distribution and transportation sector investments in Associated British Ports, HS1 and Scotia Gas Networks" said Michael Rolland, President and CEO of Borealis Infrastructure

A key objective of the consortium's gas infrastructure strategy is the creation of a gas market that is integrated and liquid. Such market integration would contribute to securing energy supplies which should benefit regional economies, their respective consumers and the N4G network users.

The transaction is still subject to clearance by the relevant authorities.

Allianz Capital Partners (ACP) is the captive, alternative asset platform of Allianz Group with assets under management of about 8.5 billion euros.

Borealis Infrastructure is a leader in direct infrastructure investing with over a decade of investment experience. Borealis manages approximately CAD 10 billion in OMERS equity capital through investments in a diversified portfolio of large-scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and government-regulated services.

Source: OMERS